As of: March 22, 2024, 6:15 p.m
By: Sophia Lother
Comments
Press
Split
The current gross pension in Germany varies depending on the federal state and gender.
What effect does the pension increase have on this?
Munich – Retirees in Germany can look forward to a significant increase.
With the pension increase from July 2024, there will be an adjustment
4.57 percent even exceeds the expectations of many.
The reason for the significant pension adjustment is “the strong labor market and good wage agreements,” explained Federal Labor Minister Hubertus Heil (SPD).
For the first time, pensions in eastern and western Germany are rising to the same extent.
But what does the increase mean for people with an average pension?
Pension increase in Germany: How high is the adjustment for an average pension?
According to the Pension Atlas 2023, German pensioners receive an average of 1,550 euros per month.
The average gross pension is highest in Saarland at 1,677 euros, while people in Thuringia receive the lowest average pension (1,427 euros).
There are also significant differences between the genders.
While men receive an average of 1,728 gross pensions per month according to the German Pension Insurance Atlas, women only receive 1,316 euros.
How does the increase affect the respective average pensions?
An overview:
Pension increase in July 2024: Table shows how much average pensions will increase
Pension amount |
Pension increase from July 2024 |
|---|---|
1316 euros |
+ 60.14 euros |
1427 euros |
+ 65.21 euros |
1550 euros |
+ 70.84 euros |
1667 euros |
+ 76.18 euros |
1728 euros |
+ 78.97 euros |
Increase in pensions in Germany: Criticism of traffic light plans is growing
The traffic light pension package has caused heated discussions.
The economist Veronika Grimm criticized the
Rheinische Post
: “The compromise does not solve any of the problems, but it creates another one: by setting the pension level at 48 percent, the burden on contributors and taxpayers is becoming ever higher.” Criticism also came from Employer President Rainer Dulger.
“Again, services are being promised that will not be affordable in the long term.
Does this federal government actually know that we are on the verge of the biggest aging surge in German history?” he complained.
With ever higher social contributions, Germany is finding it even harder to emerge from the “economic standstill”.
How do pensioners in Germany benefit from the pension increase in 2024?
(Symbolic photo) © Westend61/Imago
And expectations regarding future pension increases are also more than cautious.
According to the current pension insurance report, an average increase rate of 2.6 percent per year is assumed until 2037.
This corresponds to a total of around 43 percent.
In addition, the pressure on the pension fund is increasing, for example because of the retirement of millions of so-called baby boomers.
Without legal intervention, the pension level is likely to fall from the current 48.2 percent to 45.0 percent in 2037, according to the pension insurance report.
This means that pensions generally no longer rise as much as wages.